Ryanair’s Q2 profit falls on Mideast war impact

Irish budget airline Ryanair reported a 6% dip in net profit for its second quarter due to the impact of the Middle East war on fuel costs and ticket prices. The company's profit after tax decreased to €1.61 billion ($1.8 billion) for the three months ending September 30, down from €1.72 billion a year earlier. Ryanair, the largest European carrier by passenger numbers, attributed the fuel cost surge to the US-Iran conflict.

CEO Michael O'Leary warned that unless the Middle East situation is resolved, jet-fuel prices could remain high through 2027, potentially leading to further cost-saving measures, including temporary pay freezes, reduced cabin crew ratios, and increased use of artificial intelligence in back-office operations. Despite a 5% rise in passenger traffic during Q2, fares dropped 2% as the war caused consumer hesitation and delayed bookings.

Overall revenue increased by 4% to €5.7 billion. O'Leary stated that providing an accurate full-year profit forecast remains challenging due to ongoing uncertainties related to Middle East and Ukraine conflicts, fuel prices, macroeconomic shocks, and European air traffic control strikes. The airline had previously announced a plan to reduce its winter schedule in response to higher fuel costs.